Bank Restructuring and Resolution
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Bibliographic details
- Session: CT 19.15
- Location: Dalian, China
- Dates: September 23-27, 2019 (1 week)
- Primary language: English
- Interpretation language: Chinese
Overview
- Training Program presented by the IMF's Legal and Monetary and Capital Markets Departments.
- Invitation: Session No.: CT 19.15.
- Location: Dalian, China.
- Date: September 23-27, 2019 (1 week).
- Primary Language: English.
- Interpretation Language: Chinese.
Target Audience and Qualifications
- Target Audience:
- Mid- to senior-level staff from the People's Bank of China and China Banking and Insurance Regulatory Commission with responsibility for supervision, resolution, and the operation of financial safety nets.
- Qualifications:
- Participants are expected to have a degree in economics, finance, accounting or law, or have equivalent experience in these fields.
Course Description — major themes and topics
- Institutional framework and effective crisis preparedness:
- agencies' roles and responsibilities; interagency coordination; capacity building; and communications.
- Identification and supervision of weak banks:
- common causes of banking problems and how to identify them; tools and strategies for identifying problem banks; early intervention tools; and role of recovery planning.
- Designing effective resolution regimes:
- objectives; resolution authorities and their mandates; triggers for initiating resolution proceedings; resolution powers and safeguards; treatment of financial contracts; role of valuations in resolution; legal remedies and judicial action; and resolution funding mechanisms.
- Bank resolution in practice:
- assessing systemic importance and the economic impact of bank failures; resolving systemic and non-systemic institutions; bank intervention and liquidation procedures; role of deposit insurance agency and benefits of depositor preference; resolution planning; operational continuity in resolution; and cross-border resolution issues.
- Recapitalizing banks with public funds outside of resolution:
- rationale for recapitalizing banks with public funds; good practices for effective recapitalization strategies; recapitalization instruments; and financing considerations.
Course Objectives — competencies on completion
- Upon completion of this course, participants should be able to:
- explain the key building blocks of effective crisis preparedness;
- identify weak banks and develop strategies for dealing with such institutions;
- benchmark their national bank resolution frameworks against international good practices;
- identify the main elements of effective resolution strategies, differentiated between systemically important and non-systemic institutions;
- explain good practices for bank recapitalization and the role of recapitalization programs in crisis management strategies.
References